Alfred Tran

 

How a Smart Investment Purchase and Portfolio Review Put an Extra $15,000 per annum Cash Flow Into the Pocket of This 34 Year Old Investor

BACKGROUND

If you’re investing in property, you want to know your investment is operating to its full potential. When Wealth For Life client, Mr Tran, asked property manager Nicole Byrne and the team to manage his newly purchased investment property, the company started by ensuring he was getting the most out of his investment. Upon purchasing a block of six one-bedroom units in St.Kilda, Mr Tran asked Wealth For Life Property Management to manage the property on his behalf. The property had been managed by the previous owner, but when Mr Tran purchased it, the complex was under-rented and underperforming. “This often happens when properties are privately managed, particularly if the tenants have been there for a long time,” explains Nicole “Wealth For Life Property Management will regularly review properties we’re managing to make sure they are returning the right rent for the owner.”

CHALLENGE

Nicole says her first task was undertaking a rent review. “We wanted to establish what the rent should be, to bring it in line with the current market. We do this for all new properties we manage,” she explains. “Mr Tran was keen to keep the tenants who had all lived there for a long time, so we suggested the rent was increased in two instalments six months apart, to make it more manageable for them.”

SOLUTION

Nicole and the team then contacted the six different tenancies in person to let them know there had been a change in property management, and the rent would be increasing.“When we take over the management of properties from private owners or other companies, we always endeavour to visit the tenants to introduce ourselves, give them the details for setting up automatic payments, and make sure they know who to contact for maintenance,” says Nicole. All of Mr Tran’s tenants responded well to the phased rent increase and all chose to stay. “Mr Tran appreciated our feedback and advice,” says Nicole. “Having really good tenants, and knowing they are being treated well, is really important to him. The complex is now performing well. “Wealth For Life Property Management will regularly review properties we’re managing to make sure they are returning the right rent.”

RESULTS

Investment Purchase: 6 x one bedroom units
Previous Rental income: $107,640 per annum in total for all 6 x units
New Rental Income: $122,720 per annum in total across the complex
Increased Cashflow: $15,080 per annum

CONCLUSION

Your Property Manager must work for you the landlord and not the tenant. It is you the landlord that pays us and not the tenant. You need to work with a Property Manager that can get you the maximum rent across your portfolio on an annual basis and keep the tenants happy at the same time. Mr. Tran was able to get an extra $15,000 per annum in income because we took the time to do what he pays us to do.

“I was really happy with the investment purchase I made in the suburb of St.Kilda. When I did my due diligence I released that the rental yield was quite poor. With the help of Wealth For Life Property Management I was able to do portfolio review based on comparable rents in the area. I found out that none of the units had had a rental increase for almost 3 years. I found this astonishing given how strong the market was and how little completion there was for properties in this location. My rental yields are now much more favourable thanks to Nicole and the team Wealth For Life Property Management for their delicate negotiations with each tenant. I was really pleased with the outcome.”

Alfred Tran

Investor and Client

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